Warren Buffett special: Vital 3 for health in wealth

I spent some time thinking about Warren Buffett this weekend as he completed 50 years as the chief of Berkshire Hathway. Yes, the mega Mayweather-Pacquiao fight took up evening prime time for many Americans, but in another stadium in Omaha that Saturday morning Buffett had people lining up to know more about his philosophy and investment tips.

Some people even lined up the night before - a bit like the iPhone buying frenzy - to ensure they got entry. Such is the awe of this world famous investor. Kyle Cleeton, a research analyst told Reuters he showed up at 10 p.m. the night before. "I wanted to be first in line," he said. "You're not sure how many more years you're going to have."

But what makes Warren Buffett who he is? Why is he able to multiply his money? I interviewed him a couple of years ago during his India visit and its not like I found answers in those thirty minutes. But what I did gain was his 'sense' of money. I came back with one powerful thought – it just takes common sense to make investments work.

Lets look at his investments. Coke, ice cream, under wear, candies and such. The first thing that strikes you is how simple, and basic products these firms sell. Doubt candies and underwear will ever go out of fashion. And who does not know what they are and how they are produced? And what makes it even more exciting for Buffett, is that he understands these companies because he comes to connect with its products in every day life. No rocket science here. Buffett's oft-repeated rule: don't engage with businesses you don't understand.

The second thing about this value investor is that he makes and follows his own rules. He famously said, the first rule of making money is that you shouldn't lose money. While that's easier said than done, he is famous for seeking bargains, even if they meant for his own wedding, which lasted only 15 minutes, as Buffett did not want anything much too elaborate.

He lives below his means. We all know he has the money to buy what he wants. But Buffett has been known to be more frugal than most people with lesser money. Junk food eating habits are probably his (rather affordable) only indulgence. They even say he does not have the trappings of a billionaire, with no fancy cars, mansions or even gadgetry. That also explains his philanthropy and desire to travel around the world convincing the rich to donate.

These three Buffett-rules make it enough reason for investors and analysts to throng what the legendary investor himself calls "Woodstock for Capitalists", referring to the Berkshire Shareholders meeting. Buffett's strategies also tell us all how the greatest investors and the biggest monies have been made with simple ideas and careful approach.